As
recently as January, the CFTC conducted an
industry-wide audit of futures commission merchants — which would
have included PFG, Roe says — and found none to be in material
breach.

If that was the case, he says, "then what good are
customer-segregated regulations?"

Roe is advocating for industry-wide implementation of account
insurance across the futures trading industry. Investors would
pay one penny per contract into a national liquidity facility,
and in return would be able to recoup funds in the event of an
apparent meltdown of customer-segregated funds.

Finally, Roe said he is all the more troubled by the situation
given he is an acquaintance of PFG CEO Russ Wasendorf's son, Russ
Jr. Roe said Wasendorf Jr. had been a very forceful advocate of
reform in the wake of MF Global.